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House Holds Hearing on Digital Television Transition

Congress, Bush officials spar over funding for converter coupons

By Martin H. Bosworth
ConsumerAffairs.com

September 17, 2008

Committee chairman Ed Markey (D-MA) used the hearing to explore the status of the switchover from analog television signals to digital beginning February 17, 2009.

"With 154 days left until the shut-off, we need to gauge current consumer and industry preparedness for this transition," Markey said. "We are also eager to provide and receive suggestions for additional outreach or policy improvements to minimize consumer disruption, particularly for the elderly, individuals with disabilities, minority households, and Latino households along the border with Mexico."

The hearing was also prompted by a new report from the Government Accountability Office (GAO) that evaluated the government agencies tasked to handle the coupon program designed to subsidize purchase of converter boxes for televisions to receive digital signals. The GAO found that the National Telecommunications and Information Administration (NTIA) did not have a clear plan to address possible funding shortfalls in the coupon program.

"Therefore, consumers might incur significant wait time to receive their coupons and might lose television service if their wait time lasts beyond February 17, 2009," the GAO said in its report.

The coupon program has been a particularly contentious aspect of the overall transition program.

The $40 coupons are available for free download from the NTIA's DTV Web site, but they expire after 90 days with no option for reissue or renewal.

Many television watchers have found their coupons expiring well before many models of converter boxes have even made it to market, leading consumer groups to petition Congress to push for expansion of the coupon program.

Acting NTIA head Meredith Atwell Baker reiterated that the agency would not renew expired coupons in her testimony at the hearing, saying such a move would be costly and cause delays in the transition process.

"[I]t would be unfair to consumers who redeemed coupons in a timely manner, consistent with the statutory 90-day-expiration deadline requirement and existing coupon-program regulations," Baker said.

Baker said that the NTIA would develop a plan to address an expected increase in coupon requests as the deadline for the transition drew closer, and submit it to Congress in 30 days.

Markey and House Commerce Committee John Dingell (D-MI) countered with a detailed set of questions about their proposal that they wanted answers for by September 19.

"In light of the fact that households have requested more than 26.6 million coupons in the first eight and a half months of the Program and that six and a half months remain during which households may request coupons, how many coupons does NTIA predict will be requested over the life of the Program?," said Markey and Dingell.

The hearing also covered feedback and results from the first test of the digital signal switchover, held in Wilmington, North Carolina on September 8. Markey said that on the surface, the test was proving to be a success, but detailed consumer knowledge of what to do and where to go for help was lacking.

"In addition, other North Carolina households suffered from loss in the coverage areas of particular broadcast stations where the digital signal failed to reach historically served households," Markey said. "These 'in home' implementation issues -- and for many consumers, unexpected signal loss -- caused understandable confusion and frustration."

Markey echoed concerns issued by FCC Commissioner Michael Copps that the heavy publicity push by the FCC in Wilmington would be difficult to replicate nationwide. The FCC has pulled out all the stops on a nationwide tour of potential trouble spots for the DTV transition, working with local broadcasters and officials to raise awareness of the DTV switchover.

The GAO found that households in predominantly black or Latino areas were less likely to redeem coupons than households in other areas. The FCC, NTIA, and consumer groups have been working to increase awareness of the DTV issue in communities that rely on over-the-air television signals to a larger degree, including Latino households, the elderly, and low-income families.

The Senate Commerce Committee is planning to hold its own hearing on the DTV transition on September 23. Commerce chairman Daniel Inouye (D-HI) said that potential problems in the DTV transition would be an "albatross around the neck" of the next administration.

"I must say that if I was the person responsible for ensuring a successful transition for Sen. Obama or Sen. McCain, I would be deeply concerned," Chairman Inouye said.

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